Interesting article about Oil

wanghong

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1 S5 m) c8 ^4 UBelow is an Interesting article I found, which says that.....Do not
; ?- e2 }- M7 r" T8 G# e5 t, x8 Xexpect much from Crude Oil producers and future is not with the
% X3 P* J9 L1 d# V3 ycompanies producing Jet fuels but Biofuels. Also no wonder if some of
' T3 D; K6 d- P/ E9 E' y7 B" Ithese oil producer will go bankrupt or out of the business even if
+ W" K, \) y! M) Z4 I" Vcrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils
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5 N+ A9 v' y8 `  b  ARecently OPEC reduced crude oil production twice over just a few
6 L$ \1 l" r- n5 T& gmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
2 u- I( @8 h; nA year ago these things would have spiked the price of crude oil by at
" @4 o- j. C+ }) P5 g9 {  ^% ~' Cleast $50.00 per barrel. Today, oil price declined by a record amount.
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1 L' U9 H# \! \7 A+ O( vThere are several reasons the price of oil is decreasing in the face
+ D8 x6 w0 X6 w, d& wof so much news. These reasons are:

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1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
. M( q' P( V; s' {: j3 ^% vArabia.

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2. New natural gas has been found in Pennsylvania and West Virginia.
" r7 M( s5 M1 V; KThis is the largest find in North America.

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3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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! K" g: _( L: \7 ]0 s$ M- d9 N4 I4. Production of bio-fuels is beginning to reach critical mass. Bio
( I  _0 l. U) [. ~, W' y. Z/ Rfuel is being produced from many plants and algae. The production
3 O! a& w3 _0 e3 |potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.

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6 W6 k  _) @& Y/ n" I2 s. {4 u4 X5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
% ]. O! x5 M5 ~2 Xcattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
7 |/ G3 e# B' M/ \producing 30,000 gallons of bio-diesel per day from pork fat.


6. There are 99 nuclear reactors in various stages of planning and
  N2 q$ b; \* Yconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
will replace oil.


) {1 d) J% U6 g# A( ?! ~6 N, v" m7. Every company in any form of transportaion business is replacing
8 i% k; ]4 _- F( uolder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
0 w3 g2 ~9 h) f7 tequipment.
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" L9 K: s3 G  RAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.


2 \1 y3 [2 \8 ~7 s0 }! [* J1 F$ H8. Cities and counties throughout the US are selling the rights to
0 ?" i) O4 i7 A# o3 h7 k* ~capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.


2 o4 w0 D. y( k1 A/ Z% F9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
oil wells.
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10. Solar, wind and ocean energy is displacing oil as an energy
3 M( L9 M+ S& ?4 f% o* Fsource. Three new wind turbines are being erected every day in the US.

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Each of the above by itself will not make a large difference in the
. ]4 G* @* s. O* V: e( {! w+ Mprice of crude oil but the sum of all of them together is world
7 n  {8 j- U! d8 V# Ychanging. The important thing is that OPEC no longer has the ability
to control oil prices.
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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only